EXHIBIT 99
FOR IMMEDIATE RELEASE
CONTACT:
MICHAEL E. KELLY
EXECUTIVE VICE PRESIDENT/
CHIEF OPERATING OFFICER
MAJESTIC STAR CASINO
(702) 388-2240
MAJESTIC STAR CASINO ANNOUNCES INCREASED
FIRST QUARTER RESULTS
MAY 8, 2003, GARY, IND. - The Majestic Star Casino, LLC (the "Company") today
announced financial results for the three month period ended March 31, 2003. The
Company is a multi-jurisdictional gaming company that directly owns and operates
one dockside gaming facility located in Gary, Indiana ("Majestic Star") and,
pursuant to a 2001 acquisition through its unrestricted subsidiary, Majestic
Investor Holdings, LLC, ("Holdings"), owns and operates three Fitzgeralds brand
casinos located in Tunica, Mississippi ("Fitzgeralds Tunica" or "Barden
Mississippi Gaming, LLC"), Black Hawk, Colorado ("Fitzgeralds Black Hawk" or
"Barden Colorado Gaming, LLC") and downtown Las Vegas, Nevada ("Fitzgeralds Las
Vegas" or "Barden Nevada Gaming, LLC").
Majestic Star (Gary Property)
Net income for the three-month period ended March 31, 2003 for Majestic Star was
approximately $2.1 million, compared to approximately $1.0 million in the same
period last year, an improvement of $1.1 million or 110.0%. Net revenues for the
three-month period ended March 31, 2003 were approximately $36.0 million,
compared to approximately $31.8 million for the same period last year. The
increased net income of approximately $1.1 million and the increased net revenue
growth of approximately $4.2 million or 13.2% was primarily attributed to the
implementation of dockside gaming on August 5, 2002, the opening of the 2,000
space parking garage on May 13, 2002 and direct mail marketing and promotional
activities. The parking garage is adjacent to the gaming facility and offers
casino guests easy access to the facility. Operating income for the three-month
period ended March 31, 2003 was approximately $5.8 million compared to $4.7
million in the same period last year, an increase of approximately $1.1 million
or 23.4%.
EBITDA (defined as earnings from operations before interest, taxes, depreciation
and amortization) for Majestic Star was approximately $7.8 million compared to
$7.0 million in the prior year's period, an increase of $827,000 or 11.9%.
EBITDA is presented solely as a supplemental disclosure because management
believes that it is a widely used
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MAJESTIC STAR ANNOUNCES STRONG Page 2
FIRST QUARTER RESULTS
measure of operating performance in the gaming industry, and a principal basis
for valuation of gaming companies. Management uses EBITDA as a measure of the
Company's operating performance. EBITDA should not be construed as an
alternative to operating income, as an indicator of the Company's operating
performance, or as an alternative to cash flows from operating activities, as a
measure of liquidity, or as any other measure determined in accordance with
generally accepted accounting principles. The Company has significant uses of
cash including capital expenditures, interest payments, taxes and debt principal
repayments, which are not reflected in EBITDA. A reconciliation of operating
income/(loss) to EBITDA is included in the financial schedules accompanying this
release.
During the three-month period ending March 31, 2003, Majestic Star recognized
lease expenses related to the parking garage of $516,000. This expense reduced
both operating income and EBITDA. Similar charges were not incurred in the
three-month period ending March 31, 2002. EBITDA includes corporate expenses of
$600,000 for the three months ended March 31, 2003 and $201,000 for the three
months ended March 31, 2002.
Don H. Barden, the Company's Chairman and CEO stated, "the Majestic Star Casino
had another solid quarter, with much improved revenues, net income, operating
cash flow and EBITDA over the same quarter last year. We outperformed the market
during the first quarter of 2003. Our continued focus on better serving our
customer, marketing and promoting our property and attention to costs are the
foundation to our enhanced performance."
Casino revenues during the three months ended March 31, 2003 totaled
approximately $35.3 million, compared to approximately $31.1 million in the same
period last year, an increase of approximately $4.2 million or 13.5%. Of this
amount, slot revenues accounted for approximately $29.3 million or 83.0% of
casino revenues and table games revenues accounted for approximately $6.0
million or 17.0% of casino revenues. Slot revenues during the three months ended
March 31, 2003 increased approximately $2.8 million or 10.6% from approximately
$26.5 million recorded in the same period last year. Table games revenues during
the three months ended March 31, 2003 increased approximately $1.4 million or
30.4% from approximately $4.6 million recorded in the same period last year. The
increase is attributable to a 39.3% growth in table drop. The average number of
slot machines in operation during the three months ended March 31, 2003 was
1,542, with an average win per slot per day of $211, compared to the average
number of slot machines in operation of 1,428 with an average win per slot per
day of $207 in the three-month period ended March 31, 2002. The average number
of table games in operation during the three months ended March 31, 2003 was 56
with an average win per table per day of $1,187 compared to an average of 51
table games with an average win per table per day of $991 in the three-month
period ended March 31, 2002. The average daily win per state passenger count
during the three months ended March 31, 2003 was $89 compared to the average
daily win per state passenger count of $71 during the three months ended March
31, 2002.
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MAJESTIC STAR ANNOUNCES STRONG Page 3
FIRST QUARTER RESULTS
Capital expenditures for the three-month period ended March 31,
2003 were $923,000. On March 13, 2003, Majestic Star purchased land and a
building from a related entity for $517,000. The balance of the capital
purchases is comprised of gaming and non-gaming equipment.
As of March 31, 2003, Majestic Star had $15.0 million in cash on hand, after
payment of its January 10-7/8% Senior Secured Notes (the "Star Notes") interest
payment of approximately $7.1 million which was paid on December 31, 2002, and
had no borrowings under its $20.0 million credit facility. As of March 31, 2003,
Majestic Star had total debt outstanding of $130.0 million of 10-7/8% Senior
Secured Notes. The Star Notes are secured by the Majestic Star assets only, are
independent of the 11.653% Senior Secured Notes issued by Holdings, and are not
secured by the Fitzgeralds properties acquired by Holdings.
Majestic Investor Holdings (Fitzgeralds Properties)
On a consolidated basis, for the three-month period ended March 31, 2003,
Holdings had net income of approximately $949,000, compared to net income of
approximately $994,000 in the same period last year, a decrease of approximately
$45,000 or 4.5%. Consolidated net revenues for the three months ended March 31,
2003 were approximately $43.3 million, compared to approximately $46.3 million
in the same three-month period last year, a decrease of approximately $3.0
million or 6.5%. Consolidated operating income for the three-month period ended
March 31, 2003 was approximately $5.3 million, compared to approximately $5.5
million in the same three-month period last year, a decrease of approximately
$140,000 or 2.6%. Consolidated EBITDA was approximately $9.0 million, compared
to EBITDA of $8.9 million in the same three-month period last year, an increase
of approximately $126,000 or 1.4%.
Capital expenditures for the three-month period ending March 31, 2003 were
approximately $1.1 million. Capital expenditures primarily consist of gaming and
non-gaming equipment.
Mr. Barden stated that, "the first quarter of 2003 was challenging for the three
Fitzgeralds properties. Poor weather, particularly in Colorado, along with the
impending and then commencement of the war with Iraq, had negative influences on
our operations. Our properties reacted quickly with cost containment strategies
to mitigate the impact to our cash flows. Through the aggressive actions of our
property management teams we were able to show year over year improvements in
quarterly EBITDA at all three properties. In addition, Fitzgeralds Tunica has
shown its thirteenth consecutive quarter of year over year EBITDA growth."
During the three-month period ended March 31, 2003, Fitzgeralds Tunica had net
revenues of approximately $23.0 million, compared to approximately $24.3 million
in the same period last year, a decrease of approximately $1.3 million or 5.3%.
Casino revenues during the three-month period ended March 31, 2003 were
approximately $21.8 million, compared to approximately $23.4 million for the
same period last year, a decrease of
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MAJESTIC STAR ANNOUNCES STRONG Page 4
FIRST QUARTER RESULTS
approximately $1.6 million or 6.8%. Of this amount, slot revenues accounted for
approximately $19.7 million or 90.4% of casino revenues and table games revenues
accounted for approximately $2.1 million or 9.6% of casino revenues. Slot
revenues during the three months ended March 31, 2003 declined approximately
$1.2 million or 5.7% from approximately $20.9 million recorded in the same
period last year. Table games revenues during the three months ended March 31,
2003 declined approximately $357,000 or 14.3% from approximately $2.5 million
recorded in the same period last year. The average number of slot machines in
operation during the three months ended March 31, 2003 was 1,348, with an
average win per slot per day of $162, compared to the average number of slot
machines in operation of 1,382 during the same period last year, with an average
win per slot per day of $168. The average number of table games in operation was
34 with an average win per table per day of $697 during the three months ended
March 31, 2003, compared to an average of 34 table games with an average win per
table per day of $814 during the three months ended March 31, 2002. Hotel
occupancy was 90.3% with an average daily rate of $47 during the three months
ended March 31, 2003, compared to 95.5% and $48, respectively, during the three
months ended March 31, 2002. Operating income for the three months ended March
31, 2003 and March 31, 2002 was approximately $4.6 million. EBITDA for the
three-month period ended March 31, 2003 was approximately $6.5 million, compared
to approximately $6.4 million in the prior year's period, an improvement of
approximately $44,000.
During the three-month period ended March 31, 2003, Fitzgeralds Black Hawk had
net revenues of approximately $7.9 million, compared to approximately $9.0
million in the prior year three-month period, a decrease of approximately $1.1
million or 12.2%. Casino revenues during the three-month period ended March 31,
2003 were approximately $8.1 million, compared to approximately $9.2 million for
the same period last year, a decrease of approximately $1.1 million or 12.0%. Of
this amount, slot revenues accounted for approximately $8.0 million or 98.8% of
casino revenues and table games revenues accounted for approximately $146,000 or
1.2% of casino revenues. Slot revenues during the three months ended March 31,
2003 declined approximately $1.0 million or 11.1% from approximately $9.0
million recorded in the same period last year. Table games revenues during the
three months ended March 31, 2003 declined approximately $51,000 or 25.9% from
approximately $197,000 recorded in the same period last year. The average number
of slot machines in operation during the three-month period ended March 31, 2003
was 592, with an average win per slot per day of $150, compared to an average
number of slot machines of 593 during the three-months ended March 31, 2002,
with an average win per slot per day of $169. The average number of table games
in operation was 6 with an average win per table per day of $270 during the
three months ended March 31, 2003 compared to an average of 6 table games with
an average win per table per day of $365 during the three months ended March 31,
2002. Operating income for the three months ended March 31, 2003 was
approximately $1.2 million, compared to approximately $1.3 million in the prior
year, a decrease of approximately $27,000 or 2.1%. EBITDA for the three-month
periods ended March 31, 2003 and 2002 was approximately $1.6 million.
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MAJESTIC STAR ANNOUNCES STRONG Page 5
FIRST QUARTER RESULTS
Fitzgeralds Las Vegas reported net revenues of approximately $12.4 million
during the three-month period ended March 31, 2003, compared to approximately
$13.0 million in the same period last year, a decrease of approximately $600,000
or 4.6%. Casino revenues during the three-month period ended March 31, 2003 were
approximately $9.5 million, compared to approximately $9.8 million for the same
period last year, a decrease of approximately $300,000 or 3.1%. Of this amount,
slot revenues accounted for approximately $6.9 million or 72.6% of casino
revenues and table games revenues accounted for approximately $2.6 million or
27.4% of casino revenues. Slot revenues during the three months ended March 31,
2003 declined approximately $500,000 or 6.8% from approximately $7.4 million
recorded in the same period last year. Table games revenues during the three
months ended March 31, 2003 increased approximately $200,000 or 8.3% from
approximately $2.4 million recorded in the same period last year. The average
number of slot machines in operation during the three-months ended March 31,
2003 was 893, with an average win per slot per day of $86, compared to the
average number of slot machines during the three-months ended March 31, 2002 of
940, with an average win per slot per day of $87. The average number of table
games in operation was 25 with an average win per table per day of $1,020 during
the three months ended March 31, 2003, compared to an average of 23 table games
with an average win per table per day of $1,023 during the three months ended
March 31, 2002. Hotel occupancy was 81.8% with an average room rate of $40
during the three months ended March 31, 2003, compared to 84.4% and $41,
respectively, during the three months ended March 31, 2002. Operating income for
the three months ended March 31, 2003 was approximately $236,000, compared to
approximately $240,000 for the three months ended March 31, 2002. EBITDA for the
three-month period ended March 31, 2003 was approximately $907,000, compared to
$857,000 in the same period last year, an improvement of approximately $50,000
or 5.8%.
On a consolidated basis, Holdings ended the quarter with $21.0 million in cash
and cash equivalents. As of March 31, 2003, Holdings had total debt outstanding
of $151.8 million of 11.653% Senior Secured Notes and had no borrowings under
its $15.0 million Credit Facility.
This press release includes statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
are subject to the safe harbor provisions of those sections and the Private
Securities Litigation Reform Act of 1995. Words such as "believes",
"anticipates", "estimates", "plans", "intends", "expects", "will" or "could"
used in the Company's and Holdings' press releases and reports filed with the
Securities and Exchange Commission are intended to identify forward-looking
statements. All forward-looking statements involve risks and uncertainties.
Although each of the Company and Holdings believes its expectations are based
upon reasonable assumptions within the bounds of its current knowledge of its
business and operations, there can be no assurances that actual results will not
materially differ from expected results. The Company and Holdings caution that
these and similar statements included in this report and in previously filed
periodic reports are further qualified by
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MAJESTIC STAR ANNOUNCES STRONG Page 6
FIRST QUARTER RESULTS
important factors that could cause actual results to differ materially from
those in the forward-looking statements. Such factors include, without
limitation: the risk of the Company's joint venture partner not making its lease
payments when due in connection with the parking facility at the Gary property;
the ability to fund planned development needs and to service debt from existing
operations and from new financing; increased competition in existing markets or
the opening of new gaming jurisdictions; a decline in the public acceptance of
gaming; the limitation, conditioning or suspension of our gaming licenses;
increases in or new taxes imposed on gaming revenues, admissions and gaming
devices; a finding of unsuitability by regulatory authorities with respect to
the Company, Holdings or their officers or key employees; loss and/or retirement
of key employees; significant increase in fuel or transportation prices; adverse
economic conditions in the Company's or Holdings' markets; severe and unusual
weather in the Company's or Holdings' markets; adverse results of significant
litigation matters; non-renewal of the Company's or Holdings' gaming licenses
from the appropriate governmental authorities; and continuing effects of
terrorist attacks and any future occurrences of terrorist attacks or other
destabilizing events.
For more information on these and other factors, see the Company's and Holdings'
most recently filed Form 10-Ks. We caution readers not to place undue reliance
on forward-looking statements, which speak only as of the date hereof. All
subsequent written and oral forward-looking statements attributable to us are
expressly qualified in their entirety by the cautionary statements and factors
that may affect future results contained throughout this press release. Neither
the Company nor Holdings undertakes any obligation to publicly release any
revisions to such forward-looking statements to reflect events or circumstances
after the date hereof.
The Company and Holdings make available free of charge their annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all
amendments to those reports as soon as reasonably practicable after such
material is electronically filed with or furnished to the Securities and
Exchange Commission. In addition, you may obtain a copy of such filings at
www.sec.gov or from the applicable web site, www.majesticstar.com or
www.fitzgeralds.com.
The Company and Holdings have scheduled a conference call for Friday, May 9,
2003 at 10:00 a.m. (Eastern time) to discuss the first quarter results. The
dial-in number is (800) 218-9073, and the moderator is Michael E. Kelly. A
replay number will also be available, (800) 405-2236, pass-code 537803.
Inquiries for additional information should be directed to Michael E. Kelly,
Executive Vice President / Chief Operating Officer at (702) 388-2240.
(Condensed Statements of Operations, Reconciliation of GAAP earnings to EBITDA
and Other Statistical Data attached).
###
THE MAJESTIC STAR CASINO, LLC
STATEMENTS OF OPERATIONS (GARY PROPERTY ONLY)
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,
2003 2002
--------------------------------------
REVENUES:
Casino $ 35,332,173 $ 31,138,665
Food and beverage 391,922 433,145
Other 570,798 396,331
-------------- --------------
Gross revenues 36,294,893 31,968,141
Less promotional allowances (319,471) (215,760)
-------------- --------------
Net revenues 35,975,422 31,752,381
COSTS AND EXPENSES:
Casino 8,803,070 7,260,277
Food and beverage 383,862 451,609
Gaming taxes 9,740,773 8,576,832
Advertising and promotion 1,714,985 1,661,445
General and administrative 6,485,052 5,903,986
Economic incentive - City of Gary 1,060,247 938,260
Depreciation and amortization 2,018,116 2,277,638
-------------- --------------
Total costs and expenses 30,206,105 27,070,047
-------------- --------------
Operating income 5,769,317 4,682,334
OTHER INCOME (EXPENSE):
Interest income 14,157 7,874
Interest expense (3,534,438) (3,648,625)
Loss on disposal of assets (124,720) -
Other non-operating expense (38,335) (33,501)
-------------- --------------
Total other expense (3,683,336) (3,674,252)
-------------- --------------
Net income $ 2,085,981 $ 1,008,082
============== ==============
</Table>
THE MAJESTIC STAR CASINO, LLC
SUMMARY DATA (IN MILLIONS)
GARY PROPERTY ONLY
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31
2003 2002
------ ------
Gross Revenues $ 36.3 $ 32.0
Casino 35.3 31.2
Food and beverage 0.4 0.4
Other 0.6 0.4
Operating Income (loss) 5.8 4.7
Depreciation and amortization 2.0 2.3
------- -------
EBITDA (1) $ 7.8 $ 7.0
</Table>
(1) EBITDA is presented solely as a supplemental disclosure because management
believes that it is a widely used measure of operating performance in the
gaming industry, and a principal basis for valuation of gaming companies.
Management uses EBITDA as a measure of the Company's operating performance.
EBITDA should not be construed as an alternative to operating income, as an
indicator of the Company's operating performance or as an alternative to
cash flows from operating activities, as a measure of liquidity, or as any
other measure determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments, which
are not reflected in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2003
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
----------- ----------- ----------- ----------- ------------
REVENUES:
Casino $ -- $21,810,069 $ 8,113,961 $ 9,511,677 $39,435,707
Rooms -- 1,925,669 -- 1,873,116 3,798,785
Food and beverage -- 2,344,891 483,385 2,032,664 4,860,940
Other -- 302,121 62,246 436,471 800,838
----------- ----------- ----------- ----------- -----------
Gross revenues -- 26,382,750 8,659,592 13,853,928 48,896,270
Less promotional allowances -- (3,417,392) (744,095) (1,455,624) (5,617,111)
----------- ----------- ----------- ----------- -----------
Net revenues -- 22,965,358 7,915,497 12,398,304 43,279,159
----------- ----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Casino -- 8,904,877 2,569,572 4,084,269 15,558,718
Rooms -- 602,837 -- 943,059 1,545,896
Food and beverage -- 634,685 282,056 1,581,459 2,498,200
Other -- 81,218 170,953 157,437 409,608
Gaming taxes -- 2,561,820 1,273,028 740,465 4,575,313
Advertising and promotion -- 1,271,478 715,475 1,264,466 3,251,419
General and administrative -- 2,455,879 1,261,388 2,720,426 6,437,693
Depreciation and amortization 665,738 1,904,968 411,702 671,052 3,653,460
----------- ----------- ----------- ----------- -----------
Total costs and expenses 665,738 18,417,762 6,684,174 12,162,633 37,930,307
----------- ----------- ----------- ----------- -----------
Operating income (loss) (665,738) 4,547,596 1,231,323 235,671 5,348,852
----------- ----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income 18,298 3,287 -- 1,358 22,943
Interest expense (4,421,360) -- -- (6,730) (4,428,090)
Gain on disposal of assets -- 15,000 -- -- 15,000
Other non-operating expense (9,479) -- -- -- (9,479)
----------- ----------- ----------- ----------- -----------
Total other income (expense) (4,412,541) 18,287 -- (5,372) (4,399,626)
----------- ----------- ----------- ----------- -----------
Net income $(5,078,279) $ 4,565,883 $ 1,231,323 $ 230,299 $ 949,226
=========== =========== =========== =========== ===========
MAJESTIC INVESTOR HOLDINGS, LLC
SUMMARY DATA (IN MILLIONS)
FOR THE THREE MONTHS ENDED MARCH 31, 2003
(UNAUDITED)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
-------- ------------- ------------- ------------- --------------
Gross Revenues $ -- $ 26.4 $ 8.7 $ 13.8 $ 48.9
Casino -- 21.8 8.1 9.5 39.4
Rooms -- 1.9 -- 1.9 3.8
Food and beverage -- 2.4 0.5 2.0 4.9
Other -- 0.3 0.1 0.4 0.8
Operating income (loss) $ (0.7) $ 4.6 $ 1.2 0.2 $ 5.3
Depreciation and
amortization 0.7 1.9 0.4 0.7 3.7
------ ------ ----- ------ ------
EBITDA (1) $ -- $ 6.5 $ 1.6 $ 0.9 $ 9.0
(1) EBITDA is presented solely as a supplemental disclosure because management
believes that it is a widely used measure of operating performance in the
gaming industry, and a principal basis for valuation of gaming companies.
Management uses EBITDA as a measure of the Company's operating performance.
EBITDA should not be construed as an alternative to operating income, as an
indicator of the Company's operating performance or as an alternative to
cash flows from operating activities, as a measure of liquidity, or as any
other measure determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments, which
are not reflected in EBITDA.
MAJESTIC INVESTOR HOLDINGS, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2002
(Unaudited)
BARDEN BARDEN BARDEN
MISSISSIPPI COLORADO NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
------------ ------------- ------------- ------------ --------------
REVENUES:
Casino $ -- $ 23,356,959 $ 9,217,305 $ 9,780,487 $ 42,354,751
Rooms -- 2,085,520 -- 2,002,991 4,088,511
Food and beverage -- 2,475,101 506,060 2,114,940 5,096,101
Other -- 335,979 58,584 493,927 888,490
------------ ------------ ------------ ------------ ------------
Gross revenues -- 28,253,559 9,781,949 14,392,345 52,427,853
Less promotional allowances -- (3,906,023) (820,172) (1,397,260) (6,123,455)
------------ ------------ ------------ ------------ ------------
Net revenues -- 24,347,536 8,961,777 12,995,085 46,304,398
------------ ------------ ------------ ------------ ------------
COSTS AND EXPENSES:
Casino -- 9,908,991 3,544,498 4,572,670 18,026,159
Rooms -- 721,768 -- 1,046,732 1,768,500
Food and beverage -- 678,916 271,120 1,820,082 2,770,118
Other -- 85,040 166,416 127,198 378,654
Gaming taxes -- 2,779,336 1,483,083 757,335 5,019,754
Advertising and promotion -- 1,365,791 733,390 1,197,355 3,296,536
General and administrative 4,205 2,399,475 1,141,057 2,616,457 6,161,194
Depreciation and amortization 626,347 1,779,913 363,668 617,087 3,387,015
Pre-opening expenses 7,287 -- -- -- 7,287
------------ ------------ ------------ ------------ ------------
Total costs and expenses 637,839 19,719,230 7,703,232 12,754,916 40,815,217
------------ ------------ ------------ ------------ ------------
Operating income (loss) (637,839) 4,628,306 1,258,545 240,169 5,489,181
------------ ------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE):
Interest income 16,512 6,894 3,633 4,569 31,608
Interest expense (4,507,026) -- -- (8,361) (4,515,387)
Gain on disposal of assets -- 6,542 -- -- 6,542
Other non-operating expense (17,492) -- -- -- (17,492)
------------ ------------ ------------ ------------ ------------
Total other income (expense) (4,508,006) 13,436 3,633 (3,792) (4,494,729)
------------ ------------ ------------ ------------ ------------
Net income $ (5,145,845) $ 4,641,742 $ 1,262,178 $ 236,377 $ 994,452
============ ============ ============ ============ ============
MAJESTIC INVESTOR HOLDINGS, LLC
SUMMARY DATA (IN MILLIONS)
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(UNAUDITED)
BARDEN BARDEN
MISSISSIPPI COLORADO BARDEN NEVADA
PARENT GAMING, LLC GAMING, LLC GAMING, LLC CONSOLIDATED
----------------- ------------ ------------ ------------- ------------
Gross Revenues $ - $ 28.3 $ 9.8 $ 14.4 $ 52.5
Casino - 23.4 9.2 9.8 42.4
Rooms - 2.1 - 2.0 4.1
Food and beverage - 2.5 0.5 2.1 5.1
Other - 0.3 0.1 0.5 0.9
Operating income (loss) $ (0.6) $ 4.6 $ 1.3 $ 0.2 $ 5.5
Depreciation and amortization 0.6 1.8 0.3 0.7 3.4
-------- ------- ------- -------- -------
EBITDA (1) $ - $ 6.4 $ 1.6 $ 0.9 $ 8.9
(1) EBITDA is presented solely as a supplemental disclosure because management
believes that it is a widely used measure of operating performance in the
gaming industry, and a principal basis for valuation of gaming companies.
Management uses EBITDA as a measure of the Company's operating performance.
EBITDA should not be construed as an alternative to operating income, as an
indicator of the Company's operating performance or as an alternative to
cash flows from operating activities, as a measure of liquidity, or as any
other measure determined in accordance with generally accepted accounting
principles. The Company has significant uses of cash including capital
expenditures, interest payments, taxes and debt principal repayments, which
are not reflected in EBITDA.